If youâre a small business owner, a good team is possibly your biggest asset, but it can be tricky to stay abreast of the rules around employing staff.Â
These rules changed again recently, following the passing of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022.
So, whatâs new, and how could it affect your business?
Flexible working
For starters, employeesâ right to request flexible work arrangements has been strengthened.
That puts the onus on business owners to try to accommodate them, offer other reasonable alternatives or demonstrate why requests arenât possible, according to McCabes Lawyers Principal Tim McDonald.
âIf thereâs no agreement, the employer can be taken to the Fair Work Commission, and it can make a ruling as to whether itâs reasonable for the employer to agree to those requests,â McDonald says.
âBusiness owners may need to consider how theyâll handle any conflict that may arise should an employee learn theyâre being paid less than a co-worker in a similar roleâ
Keeping it quiet
Requiring employees to keep their remuneration details confidential â a common provision in employment contracts historically â is no longer permissible.
Revised pay secrecy provisions mean itâs now up to the individual employee to decide whether they want to share.
As well as updating employment policies and contracts to reflect the change, business owners may need to consider how theyâll handle any conflict that may arise should an employee learn theyâre being paid less than a co-worker in a similar role.
âThat could be an issue in a small business if youâve got people on different remuneration, and itâs made known to other employees,â McDonald says.
Strengthened sexual discrimination and harassment legislation
While sexual discrimination and harassment in the workplace were already unlawful, employers will now have to take more proactive measures to prevent and eliminate it.
âOn a day-to-day basis, itâs going to have to be treated more like occupational health and safety,â McDonald explains.
âIn the same way employers have to think about the health and safety risks that ensue when people are put in certain situations, theyâll have to consider what risk there might be of sexual harassment, on a work trip or at an industry function, for example.â
Fixed-term contract restrictions
Repeatedly employing individuals on fixed-term contracts, in lieu of offering them permanent work has also been outlawed. Under the new provisions, itâs âone and doneâ.
âFor some small businesses, taking on a permanent employee can sometimes be a big commitment, and theyâve been more comfortable maintaining fixed term arrangements which donât carry an ongoing obligation,â McDonald notes.
âBut the governmentâs view was that it was unfair that employees had no remedy, if successive fixed terms contracts were brought to an end, so those circumstances have been restricted.â
Seeking professional advice
The Secure Jobs, Better Pay amendment represents the biggest change to employment law since the introduction of the Fair Work Act, and thereâs a lot that business owners need to be across.
Human resources management is one of the most complex aspects of owning a business and the cost of getting it wrong can have monumental financial implications for business owners, notes Jess Gleeson, Strategy and Compliance Manager at HR consultancy Now Actually.
Taking advice can help ensure you donât inadvertently fall foul of the new provisions.
âDetermining what needs to be done can feel overwhelming, but you donât need to do it alone â there are professionals who can assist you,â Gleeson says.
Cover for employment-related claims
Ensuring youâre compliant with legislation and have appropriate insurance in place will help protect your enterprise.
Employment practices liability cover can help mitigate the risk of employee claims related to discrimination, unfair dismissal and harassment. To discuss your cover needs, contact your adviser or broker today.
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This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker or adviser as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.